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University of Nebraska Halves Reimbursement Rate

In light of its budget crisis, the University of Nebraska system has lowered its vehicle mileage reimbursement rate from 53.5 cents per mile, the Internal Revenue Service’s recommended rate, to 25 cents per mile.

The lower reimbursement rate matches the average cost for the university to rent a vehicle using private rental or pool vehicles and is expected to save up to $500,000 annually. According to a statement, the university will work with employees to obtain the necessary transportation, which may include leasing or longer-term contracts for fleet use.

The university system is currently battling a $49 million budget shortfall, due to cuts in state funding and rising costs. Earlier this month, Nebraska University President Hank Bounds announced several structure changes and policies to reduce expenses, including the elimination of at least 100 jobs, reports the Lincoln Journal-Star. Among these changes, the university system’s director of procurement services was tasked with overseeing procurement policies to save $6.8 million on fuel, vehicles, and insurance.

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In a 24-year fleet career that began in 1964, Helen Smorgans managed fleets for Johnson & Johnson corporate and 10 other J&J companies. She was co-founder of the NAFA New Jersey chapter and also served on the organization's National Board of Governors.